Emergent, MorphoSys to co-develop MOR209/ES414

MorphoSys AG (Xetra:MOR; Pink:MPSYF) partnered with Emergent BioSolutions Inc. (NYSE:EBS) to develop and commercialize ES414, a bispecific ADAPTIR antibody targeting prostate-specific membrane antigen ( PSMA; FOLH1; GCPII) and CD3. The compound -- to be renamed MOR209/ES414 -- was shown in preclinical studies to cause T cells to attack prostate cancer cells expressing PSMA.

The companies will jointly develop the compound with MorphoSys bearing 64% and Emergent 36% of the total costs. MorphoSys will gain worldwide commercialization rights excluding the U.S. and Canada, where Emergent will retain rights. Emergent will receive an upfront payment of $20 million and is eligible for up to $163 million in milestone payments. Emergent will receive low single digit royalties on product sales in MorphoSys's territories, and MorphoSys will receive tiered royalties from mid-single digits up to 20% on product sales in Emergent's territories. ...